Do you buy local products?

December 8, 2004 1:27 PM

Do you "Buy Local"? Is there a price point for your principles? {MI}

Recently, I went looking for a piece of commodity PC hardware.
Priced at Newegg, the hardware was $65 + $5 shipping for a total of $70.
I then went to the local recommended computer shop, where the the price for the same part was listed at $129.
Close to twice as much!
After some negotiation, and pointing out the huge price differential, the local store dropped their price to $89.
This is a lot better, but still about 40% over the price of online suppliers.

I pride myself on supporting local business whenever I can, but 40%?

So the question becomes, Do you put a price on your support of local businesses? What percentage over the cost of Target(Walmart, etc) is acceptable to you?

(I should note that I rarely (this is the first time in 2 years) buy hardware, and when I do I know exactly what I want, so service and support isn't really a concern. Also, I live in a state with no sales tax, so I don't save that buying online.)

posted by madajb to Shopping (22 answers total)

Commodity stuff or impersonal stuff like what you're describing I never bother to buy local. But with book stores, record shops, and the like I will always buy local, most of the time no matter the price.
posted by josh at 1:53 PM on December 8, 2004

I suppose it depends upon the item. For the additional money you'd spend locally, would you have an easier time getting service (if it was an issue for you) or replacing an item if it was faulty? If not, then I would have pocketed the savings and bought online.

For things manufactured in a particular area, I'm willing to pay more. I love buying wine directly from the winery. For example, I was recently on vacation, visited a winery and had them ship 12 bottles to me. If I can't, I prefer to buy from smaller, local shops.

For things of a certain quality, I'll pay through the nose to get not only the quality I want, but also to support a local vendor. At Thanksgiving, I purchased my turkey from a local, historic farm which is all organic in their approach to their goods. I easily paid as much as I would for a LARGE prime rib just to get a turkey. However, not only was it organic; it was local. To me, it was worth the cost.
posted by onhazier at 1:54 PM on December 8, 2004

How do you define local?
If I live in the metro area that contains the corporate headquaters of Target and Best Buy, is my shopping at those two stores "shopping local"?
posted by Coffeemate at 1:56 PM on December 8, 2004

I buy local as often as possible. I prefer to keep as much money in my local community, rather than shipping it off to Seattle or New York or Arkansas.
posted by cmonkey at 1:57 PM on December 8, 2004

Response by poster: onhazier - Not really, it's a DVD-RW, so if it breaks, it's just broken.
The reason I used Newegg for my price comparison is that they have decent RMA service. I could get it even cheaper (~$60) online, but only from fly-by-night type of places.

Coffeemate - Well, for you, I suppose it would count as local. Plus, you guys have that cool mall up there.
posted by madajb at 2:15 PM on December 8, 2004

Not me. There's particular local stores that I patronize because I like something in particular about them (service level, atmosphere, whatever), but being a local store in and of itself carries no weight with me. Likewise, there are particular national or international chains which I avoid because I dislike something in particular about them, but the mere fact that a store is part of a national/international chain doesn't count against it, in my book. (And, conversely, there are local stores I avoid, and chain stores I actively patronize for the same reasons.)
posted by DevilsAdvocate at 2:20 PM on December 8, 2004

$89 instead of $70 is 27% more, not 40%. personally, i would go with that, because they've dropped the price so far ($40 off!). although it's also fair to say i'd more likely never even bothered to ask for a lower price and instead gone elsewhere, but we have a pile of local computer shops.
posted by andrew cooke at 2:32 PM on December 8, 2004

I think that more important than buying from a local vendor just because they are local is considering where your money will go.
In my previous example, I can say that some portion of the money I spend at Best Buy or Target will go towards my local economy - I know people who work for these companies and can see their economic impact.
However, both of these companies are also shipping money out of the local economy in the form of stock dividends, paying suppliers, etc. That is why I don't consider these companies to be "local" like the owner-operated wine store in my neighborhood is.
posted by Coffeemate at 2:39 PM on December 8, 2004

I buy local when I can. It's not often that I even know if the goods were produced locally, but I'll patronize a local retailer when possible.

The myth that independently owned stores always have higher prices is bunk. For some areas, like grocery/drugstore stuff, sure. Walmart is cheap. But, for example, my dad has been running a printing/photocopy place for 15 and doing quite well for himself just by always charging 10-15% less than Kinkos does - across the board.

Places like Home Depot will actually take a loss on certain items, selling them really cheap in a highly-visible way (like on the front page of their Sunday paper supplement) just to create the illusion that everything they sell is super-cheap. Meanwhile, they clean up with fat margins on most everything else, according to carefully calculated retail science. You can't just generalize that "big box" = "cheap." It's not always true.

I can usually find the best prices of all online, so often I'm comparing the local store's price to the online price + shipping, which tends to favor the local guy. The ability to get it same-day is nice, too. And it's great to avoid all the extra packaging that comes with buying stuff online (boxes, styro peanuts, etc).

Buying local has its place, and it doesn't always cost you extra. Farmer's markets, for example, can't be beat.
posted by scarabic at 3:09 PM on December 8, 2004

I buy local when I can though I guess I never thought of computer parts before. It seems like a pyrrhic victory to proclaim that you bought your computer parts locally when they were actually made in Taiwan. The local computer stores, or even chain stores such as Best Buy rarely have what I want.
posted by substrate at 3:19 PM on December 8, 2004

I'm normally anti-chain and try to buy locally (all produce from farmer's market, stuff like that), but not when it comes to computer parts. I got sick of going into small local computer stores, and being told I didn't want what I was looking for, was not capable of repairing computers and clerks trying to upsell me. Computer stores used to be as bad as auto parts stores, for a woman. They may still be. I won't go in them.

scarabic is right - my local lumberyard is nearly always much cheaper than Home Depot, and when it is more expensive, it isn't by much. Plus the wood is higher quality, they help me get it packed in my car and they'll cut it down so I can get it in my car.

I do wonder, though, if my refusal to shop at Walmart, avoidance of other chains and my efforts to buy locally make any difference at all. I just don't buy that much.
posted by QIbHom at 3:55 PM on December 8, 2004

For me, buying local means buying homegrown -- from a business that was started by someone in my community, employs my neighbors and contributes to the tax base (giving to local charities is a plus, and I will go out of my way to shop at a local store that, say, hosts cat adopt-a-thons for the area shelter). My conundrum, magnified during this last election, is this: Whether to buy from a local store that supports candidates I don't like. OT, but how do other MeFites make this decision?
posted by MonkeyToes at 4:15 PM on December 8, 2004

Do you "Buy Local"?

No. I think that represents a very unsophisticated understanding of economics. I shop at vendors that provide satisfaction, and that includes many variables (of which one is price).
posted by rushmc at 4:18 PM on December 8, 2004

I never considered buying local because living in N VA there isn't much opportunity. But now we live in Vermont, and not only do you have to buy local for a lot of things, I've discovered how great it can be. Going to the local hardware store is so much easier than going to Home Depot for little, quick trips.

But not sure how much more I'd pay -- that is a really good question. And one I haven't answered yet.

I'm still in the habit of buying certain things online because I know I'll get them cheaper (habit from N VA days), like CDs and books. I'll still buy from Best Buy because I'm not sure where else to go for some of the stuff (where else do you buy new DVDs?).
posted by evening at 4:22 PM on December 8, 2004

Response by poster: scarabic - Around here, local almost always means more, mainly because our local stores tend towards the "boutique" style. Our farmer's market is definitely more expensive(but oh so worth it).
But you are right, the price difference isn't usually enough to make a huge difference.
That's why I ran into this dilemma in this instance, 25%(thanks, andrew cooke) is a big margin in my book.

QIbHom - I'm the same way, I don't buy a whole lot and I have often wondered if my boycott of a long list of stores makes any difference.
posted by madajb at 4:23 PM on December 8, 2004

I have a sophisticated understanding of economics, and I shop local. Ideally, things that are made locally, too. Computer parts? Meh. Beef, cheese, books, clothing, and shoes? Absolutely. My mark-up willingness varies depending on how well I know or am financially related to the owner of the business. I'll pay twice as much to do business with a client. Maybe 10-20% more for a total stranger. A sliding scale in between. Often, it's cheaper buying things locally, as others have pointed out.

I live in Charlottesville, though. Things are like that there.
posted by waldo at 4:42 PM on December 8, 2004

handpainted signs. to me, they're really the secret. i do my best to shop/buy locally here in my hometown, hoping my dollars make a lap or two through the community before falling into walmart's blackhole. and likewise, when i travel, i try to make purchases from local businesses too... without knowing the lay of the retail landscape, i look for handpainted signs, hoping any small business that hired someone to craft them a sign calls the area home. i know it's not foolproof, but it's a good rule of thumb i think.

what i cannot buy from a locally-owned business i buy from any local business assuming they've hired my neighbors to work for them... things unavailable locally i buy online.

walmart doesn't get my money.
posted by RockyChrysler at 5:03 PM on December 8, 2004

I don't go out of my way to buy "local". Of course, I'm a displaced college student dissatisfied with this entire area, and plan to move in time.

I prefer to buy from small, reliable sources, and I find myself enjoying no-flashy-ads products sold with the virtue of high quality and word of mouth.

Sadly, I admit to patronizing Target often for groceries. Their store brand products are usually decent quality, they have in-store Fair Trade coffee and a fair bit of organic produce and dairy. Big chain or not, they do a surprising job of providing what I want at a reasonable price.

Regarding price, it depends mostly on the choices and quality. I'll spend 25% more at a local place if I really feel like I'm getting better quality or better service.

That, and I'd likely spend 100% more at any place where the employees refrained from active physical assault if it's the only alternative to Wal-Mart. No, I take that back. Even if the employees at the other place beat me with nailbats, and it was 500% more, I think I'd still go there.
posted by Saydur at 6:29 PM on December 8, 2004

Response by poster: rushmc - Care to elaborate for us unsophisticated types, or were you just being snarky?
posted by madajb at 9:18 PM on December 8, 2004

Since I have started exploring the idea of opening my own business, I have become far more aware of the impact of "buying local". I had never given it much consideration before, but now I do.

For example, when I decided to build myself a new computer this past summer, I did all my research online. I put together a parts list of what I wanted, and then found a local retailer I liked. I paid the differential (25% or so) happily, because this guy is employing local people and is part of the community. I know he cant match Newegg prices because he doesnt have the volume they do, and I don't mind.

As a counter example, when I go buy a receiver for my home entertainment center after Christmas, I will probably find the one I want online for the lowest possible price since it's unlikely I am going to find it anywhere but at a national chain. If there's no way for me to patronize a local business, then price becomes the overriding factor.
posted by Irontom at 5:12 AM on December 9, 2004

As a local retailer myself, people arguing on prices, I often just let them buy online. The fact is I *KNOW* most of them will be back, and back as loyal customers, for their next purchase. I think it's because the types of items I sell are the types of items where, as a consumer, you fall into one of a few categories:

(a) You know EXACTLY what you want and need, and can buy without having to ask a single question. You can also use this item without trouble.

(b) You have an idea of what you want based on a reccomendation from a friend. You need to ask lots of questions about the item, but you can use it yourself.

(c) You have the same idea as (b) customers, but you can't possibly use the item without lots of guidance.

(d) You don't know what you want, but you are knowledgeable enough to use and install the item when you have it.

(e) You have no clue what you want and you have no idea how to use it.

Consumers in (a) are best to buy online, and I'll usually reccomend they do that, because why not be nice? Consumers in category (c) and (e) eat alive online stores due to their recurring support needs, so I *love* forwarding customers in those categories to the online stores, since it slowly puts them out of business, or causes them to raise prices to my level.

It's the (b) and (d) category customers I try to work the hardest with to keep their busines in my store. Since (c) and (e) customers will only ever make one purchase online, it's easier to let them live and learn. But the (b) and (d) customers could be swayed to continue buying online, so I need to give them good reasons to shop at my bricks and mortar shop, instead. Those reasons usually include good guidance on what products are best, and easy to deal with customer service.

I know that all sounds odd, but there you have it.
posted by shepd at 6:15 AM on December 9, 2004 [1 favorite]

Response by poster: I want to shop at shepd's.
You don't sell DVD-RW drives by any chance, do you?
posted by madajb at 2:07 PM on December 9, 2004